Bill > AB2089

This bill extends a property tax benefit that waives interest and penalties on delinquent payments for properties undergoing construction for welfare tax exemption purposes, making this waiver indefinite and applicable to properties that lost their exemption due to changes in control or ownership, provided the benefit is necessary to maintain the welfare exemption. The welfare tax exemption, a constitutional provision, allows certain nonprofit organizations to be exempt from property taxes on property used for religious, hospital, scientific, or charitable purposes, with a partial exemption available for rental housing serving lower-income households. Previously, this waiver was limited to property tax installments due between December 10, 2025, and April 10, 2031, but this bill expands it to apply from December 10, 2025, for construction and from December 10, 2027, for properties experiencing changes in control or ownership. The bill also clarifies definitions for "change in control" and "change in ownership" and acknowledges that it may impose state-mandated local program costs, for which reimbursement procedures are outlined.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2089